ECOCERT Fair Trade and Social Responsibility

Transcription

1 ECOCERT Fair Trade and Social Responsibility ESR standards, version 2013 (applicable from June 15 th, 2013) Main changes Main principles by section mai-13 1

2 Foreword Considering: The complementary and close links existing between the principles of Fair Trade and those of organic agriculture The necessity of linking the concept of fair trade with a concept of social responsibility expanded to all the participants in the supply chains The universality of fair trade principles The search by consumers for greater guarantee and transparency in the face of increasing diversity of practical variations on Fair Trade mai-13 2

3 Foreword This standards intends to: Provide a guarantee for projects linking organic agriculture and fair trade Define a social responsibility process allowing businesses and organisations to position themselves with respect to their impacts on society and the environment Define a fair trade process applied to both the producers of developing countries and the producers in developed countries Reinforce the credibility of fair trade for consumers and offer more transparency with regard to this process mai-13 3

4 Main changes North-North Fair Trade Responsible basis Two possible labels Control methods Rating system Development fund Eligible products Composition rules mai-13 4

5 Main changes North-North Fair Trade Fair Trade is traditionally associated with «South-North» exchanges, for exotic products coming from developing countries «North-North» Fair Trade is also legitimate since it answers the same need for a local and sustainable agriculture, and can rely on the same universal principles The scope of the standard was extended to «North-North» exchanges mai-13 5

6 The main changes A strengthened Responsible basis (1) New: Companies / organisations committed to ESR Fair Trade shall above all be Responsible companies / organisations The ESR audit now assesses the CSR (Corporate Social Responsibility) management system according to the main ISO guidelines After the ESR audit, the company/organisation knows its performance in the CSR process and can value its practices thanks to the systemguarantee Responsible Company / Organisation delivered by ECOCERT Exchange of Fair Trade products within supply chains ESR standard FAIR TRADE RESPONSIBLE BASIS Corporate Social Responsibility mai-13 6

7 The main changes A strengthened Responsible basis (2) The structure of requirements has been updated according to the guideline Quality Assurance Organisation governance Human Rights Work relations and conditions Respect of the Environment Good business practices Relationship with consumers Communities and local development Procedures implemented to comply with the standard Social Responsibility Company/Organisation level (Line ) Fair Trade criteria are integrated all along these different areas mai-13 7

8 The main changes 1 standards, 2 possible labels FAIR TRADE CRITERIA Compliance Fair Trade certification, Communication about Products RESPONSIBLE CRITERIA Compliance Responsible certification, Communication about Company/ Organisation May-13 8

9 The main changes The new control methods (1) The control plan is adapted to the realities in supply chains Clear distinction between 2 kinds of operators: Key -operators= Production Groups, First Buyers/Importers, Brand owners Intermediate operators= Intermediate buyers (including Subcontractors) and Handlers Intermediate operators involving a low risk can be registered instead of certified Registration: Annual document review instead of annual audit. Emission of elements necessary to the monitoring of traceability. Possible unannounced audits. mai-13 9

10 The main changes The new control methods (2) Social aspects are now checked for all operators, through interviews with workers and producers Workers: Individual interviews according to the total number of workers and to the occupational risk Ex. Company with 300 employees and low social risk : 9 workers to be interviewed Producers (producer groups): Collective and individual interviews Ex : Cooperative of 1000 producers : 30 producers to be interviewed and at least two «focus group» to be organised mai-13 10

11 The main changes The rating system Development of a rating system to assess operators performance Score by criterion: from 0 to 4 4 levels of criteria: recommendation, minor, major or KO (prohibitive) Certification granted if: Absence of KO and majors Min % of compliance reached Monitoring of corrective actions: action plan and achievement of corrective actions checked by ECOCERT Total score obtained allow to determine the performance level reached: «Commitment»; «Mastery»; «Excellence» mai-13 11

12 The main changes The development fund amount The amount earmarked for the development fund corresponds at least to: 5% of the price paid to the Production group for insignificantly processed products 3% of the price paid to the Production group for significantly processed products Insignificantly processed products: the cost of raw material represents 75% or more of the price of the sold product. Significantly processed products: the cost of raw material represents less than 75% of the price of the sold product. mai-13 12

13 The main changes Eligible products Organic food products Organic or natural cosmetic and aromatic products Organic or natural textiles Eco-products (paint, detergents, room fragrances) Handicrafts mai-13 13

14 The main changes Composition rules of products Case 1: Fair Trade Case 2: Fair Trade, X Supply Chain Case 3: Mention only of the ingredient Food 95% of agricultural ingredients 20% of agricultural ingredients Leave-on products* except fragrances: 5% of total ingredients Cosmetics 95% of total of ingredients Fragrances and rinse-off products*: (Fair trade ingredients / Plant ingredients) > 25% AND (Fair trade ingredients / Total ingredients) > 1% Thresholds not met Textiles 95% of total fibres 70% of total fibres Detergents / Air fresheners 95% of total ingredients 5% of total ingredients * Cosmetic products not intended to be removed after application (oils, butters, creams, milks ). ** Cosmetic products intended to be removed after application (lotions, shampoos, gels ). mai-13 14

15 Main requirements by section Organisation governance Human Rights Work relations and conditions Respect of the Environment Good business practices Relationship with consumers Social commitment mai-13 15

16 Les 10 critères «KO» du référentiel ESR 1. Absence of worker discrimination 2. Absence of worker forced labour 3. Absence of practices violating human dignity 4. Absence of child labour 5. Freedom of association and collective negotiation for all employees 6. Non-discrimination with regard to unionised employees 7. Guarantee of safe working conditions for employees 8. Protection of threatened species and habits in production areas 9. Non-destruction or conversion of natural ecosystems adjacent to production areas, no destruction of primary or old secondary forest in the 10 years preceding the start of the programme 10. No illegal forms of production or trade in protected plants or animals mai KO

17 1. GOVERNANCE Responsible basis CSR concerted policy Clear and non-discriminatory admission rules (Producer groups) Participatory and democratic functioning (Producer groups) Fair Trade (Production groups) Fair Trade concerted policy 3-year based development plan mai-13 17

18 GOVERNANCE The governance of the organisation is the system that allows to an organisation to make decisions and apply them in order to reach objectives. Cornerstone of the standard, governance is the "place" where the company liable. How? By the responsible decision-making and allocation of resources to achieve its objectives. Sustainable Development falls in with governance, and its manifestation with the strategy. In other words, good governance needs to be a clear and assertive will from the Direction. 18

19 GOVERNANCE CSR policy Formal commitments have been made by Management/managers in terms of corporate social responsibility (CSR): a policy is in place, and a management system ensures its monitoring. FAIR TRADE policy The Production Group adds to its CSR policy a Fair Trade policy, which clearly identifies the beneficiaries of the programme. This policy is targeted on fair trade priority areas 19

20 GOVERNANCE Discrimination and integration within the groups The Producer group has clear and non-discriminatory membership rules, and welcomes disadvantaged groups and women within the group Democracy and participation within the groups The Producer group works in a democratic and participatory matter, without any links to unbalanced forces in decision-making 20

21 GOVERNANCE Democracy and participation within the groups In the case of Contract production companies, an organisational strengthening plan aiming to improve democracy and participation among producers is implemented FAIR TRADE : For Contract production companies, if the producers wish it so, the company can support the development of commercially independent organisations 21

22 2. HUMAN RIGHTS Responsible basis Absence of discriminations Absence of forced labour Absence of child labour mai-13 22

23 HUMAN RIGHTS Discrimination and integration of vulnerable workers The company/organisation does not discriminate against the workers it employs, and on the contrary, it seeks to encourage disadvantaged workers Fundamental rights to work The company/organisation does not use any form of forced labour, of child labour, and provide young workers with good working conditions 23

24 HUMAN RIGHTS For producer groups, producers who are members of a group shall apply the same principles towards their own workers In producer groups, two levels are available for social criteria Central level: collective units Individual producer level: producers members of the group 24

25 3. WORK RELATIONS AND CONDITIONS Responsible basis Formal, regular work Adequate salaries, social benefits and working hours Freedom of association and collective negotiation Worker health and safety Worker training mai-13 25

26 WORK RELATIONS AND CONDITIONS Employment and employer-employee relationship The company/organisation provides, as much as possible, formal and regular work to workers it employs Working conditions social protection The company/organisation respects the ILO rules, the relevant local legislation or the collective conventions regarding wages, social advantages and working hours Social dialogue The company/organisation guarantees freedom of association and collective negotiation to all workers 26

27 WORK RELATIONS AND CONDITIONS Health and safety at work The company/organisation provides working conditions that are as safe as possible for the health and safety of workers, by minimising the inherent sources of danger in the workplace Human resources development The company/organisation encourages its workers' continuous or professional training 27

28 WORK RELATIONS AND CONDITIONS For producer group, producers who are members of a group shall apply the same principles towards their own workers In producer groups, two levels are available for social criteria Central level: collective units such as processing plants, offices... Individual producer level: producers members of the group 28

29 4. THE ENVIRONMENT Responsible basis Synthetic chemical products and GMO Adequate waste, discharge and waste water management Adequate water resource management Adequate energy resource management Respecting surrounding ecosystems Eco-packaging policy Fair Trade Organic or natural certification Prohibited materials in packaging of finished products mai-13 29

30 ENVIRONMENT Synthetic chemical products and GMO The company/organisation has responsible practices in place related to the use of GMO and chemical products FAIR TRADE: The company/organisation is certified organic or natural for the products to be certified Pollution prevention The company/organisation checks and minimises any impacts from waste, gaseous and liquid discharges and waste water on the environment and on health 30

31 ENVIRONMENT Sustainable use of water resources The company/organisation is aware and manages the quantities of water used for production Alleviation of climate change and adaptation The company/organisation makes the effort to minimise fossil fuel energy consumption and to maximise the use of renewable energy Protection and restoration of surrounding environment The company/organisation protects and if possible improves the sustainability of surrounding ecosystems (actions on biodiversity, soil,...) 31

32 ENVIRONMENT Eco-packaging policy The company/organisation minimises volumes and limits impacts of packaging used Materials forbidden in packaging of finished products EQUITABLE : The company/organisation does not use materials forbidden by the standards for packaging of final products to be certified 32

33 ENVIRONMENT The Production group makes sure that those good practices are applied to workplaces/premises as well as production units In Production groups, two levels are available for environmental criteria Processing/Marketing units: processing plants, premises Primary production units: parcels, producers mai-13 33

34 5. GOOD BUSINESS PRACTICES Responsible basis Respecting the rights of indigenous and tribal people Responsible procurement policy Fair Trade Justified fair trade profit margins Respect of payment terms Freedom of sale Agreed fair prices Context-related guaranteed minimum prices Long-term partnership contracts Pre-financing on request Constant dialogue between partners Development support (provision of a development fund (DCs); direct support) Transparent and participatory management of the development fund (DCs) mai-13 34

35 GOOD BUSINESS PRACTICES Access to resources The operator has all the required legal permits for the setting up of the activity, particularly regarding land rights In the event of commercial use of biodiversity resources or traditional knowledge, agreements are made with the related communities for recognition and adequate compensation of this use => Fight against bio-piracy 35

36 GOOD BUSINESS PRACTICES Responsible procurement policies Buyers define and implement a responsible procurement policy for ethical sourcing. They are vigilant regarding the social and environmental practices of their suppliers Producer groups favour procurement from the most disadvantaged producers Processor and artisan groups ensure that their key suppliers adhere to good social and environmental practices. They do not use raw materials that have contributed to the degradation of the surrounding ecosystem or heritage. 36

37 GOOD BUSINESS PRACTICES Fair Trade Justified FAIR TRADE profit margins A policy for margin moderation is set up, so that the margins applied on fair trade products remain reasonable FAIR TRADE contracts Buyers define the fair trade purchasing terms within clear and adapted sales contracts First Buyers set up long-term partnership contracts with Production Groups In long supply chains, Brand Owners set up long-term partnership contracts with First Buyers Contract production companies define the fair trade purchasing terms within clear and adapted contracts 37

38 GOOD BUSINESS PRACTICES Fair Trade FAIR TRADE pricing policy and terms of payment Buyers pay their fair trade suppliers within the agreed time frames Producer groups establish clear rules for buying from producers. They pay producers in a reliable and timely manner First Buyers guarantee a minimum price to Production Groups, and offer them fair and remunerative enough prices Production Groups determine their sustainable costs of production in order to reach a fair minimum price with his buyers Producer groups guarantee a minimum price to their producers members, and offer them fair and remunerative enough prices Processor and artisan groups establish fair commercial partnerships with their nearest suppliers of agricultural products

39 GOOD BUSINESS PRACTICES Fair Trade Fair practices First Buyers have fair practices, not seeking to mislead Production groups on the price paid, and protecting freedom of sale Contract production companies have practices that protect the producers' freedom to sell Quality of the FAIR TRADE partnership First Buyers maintain a constant dialogue with Production Groups, in order to ensure the balance of the partnership. They grant them pre-financing of up to 60% of the contract value upon request Production groups maintain a constant dialogue with First Buyers, to ensure a transparent management of all Fair Trade benefits and to sustain a long-term partnership 39

40 GOOD BUSINESS PRACTICES Fair Trade Development support (FAIR TRADE) First Buyers support the development of Production Groups. For "Southern" suppliers, this assistance will be made through the provision of a development fund used to finance community actions. For "Northern" suppliers, this assistance will be direct development assistance of a technical, financial or human nature. In the "South", Production Groups will manage the development fund transparently, involving the project beneficiaries as much as possible in the choice of projects funded 40

41 6. CONSUMERS Responsible basis Protection of consumer health Fair Trade Fair trade information and awareness May-13 41

42 CONSUMERS Protection of consumer health and safety The operator shall ensure that he provides products which are not harmful for consumer health Education and awareness about Fair Trade (Brand owners) FAIR TRADE: The Brand Owner shall carry out actions in order to raise awareness and increase knowledge on Fair Trade issues 42

43 7. SOCIAL COMMITMENT Responsible basis Support for community projects Promotion of education and culture Creation of local employment Technical support to producers Actions to increase the local added value May-13 43

44 SOCIAL COMMITMENT Territorial anchorage The operator supports projects which have an impact on the local community Education and culture The operator supports projects promoting education and culture Creation of local employment The operator creates new jobs at a local level 44

45 SOCIAL COMMITMENT Producer groups There are technical support actions, which ensure that the supply chain remains sustainable Some actions are implemented in order to increase the added-value on-site (processing, diversification, local markets...) 45

46 ECOCERT ESR contact details ECOCERT ENVIRONNEMENT Service ESR BP L'Isle-Jourdain France T +33 (0) Mob +33 (0) fairtrade@ecocert.com mai-13 46

47 The main changes The new control methods (Appendix) The risk is low if the operator meets the following characteristics: Less than 10% of the turnover is Fair Trade Fair Trade turnover < EUR Guaranteed traceability Socio-environmental risks low or controlled mai-13 47